Showing posts with label 8 Tips For Starting Your Own Business. Show all posts
Showing posts with label 8 Tips For Starting Your Own Business. Show all posts

Wednesday 30 June 2010

Compete with the big fish: insider secrets for upstarts and underdogs

DAVID WILSON
June 29, 2010 - 1:31PM

Even if you run your business from a box room, you can still compete with the big fish.

Even if you operate on the back of a broadband connection, you can still take on the big fish.
Statistics are a stark reminder of just how hard it is to keep a business afloat.

Forty-two per cent fail in the first four years, according to the Australian Bureau of Statistics. So, for a small business, competing with the big fish may seem like mission impossible.

But underdog status has its virtues. For one thing, fair go-fixated Aussies love underdogs. For another, in accordance with Hollywood scripts, upstarts do over-deliver - look no farther than the feats of New Zealand's world cup "All Whites" and Ghana's "Black Stars".

If you think that the two teams just got lucky, take a look at a selection of nitty-gritty tips on how to raise your game. Even if you run your business from a box room on the back of a broadband connection, with rigour and guile you could still make a splash, and become a "challenger brand".

So, read on, have a go. And never forget how lucky you are to be free from all those big company expenses: comfy office chairs, bonuses, pensions, plus - worst of all - salaries for staff who refuse to retire but effectively quit long ago.

How to punch above your weight: six secrets


1. Focus on focus

According to the director of new ventures incubator Pollenizer, Mick Liubinskas, to compete with big business you must tackle one area: the threat of dilution. In his view, the secret of building a business with heft is focus. A giant rival may beat you on scope, but, if you focus, it cannot match your ability to get things done.

Keep products simple. A lean and focused operation puts you in a position to thrive. According to Liubinskas, a plus of a focused approach is that you become easier to buy.

2. Come clean

Irrespective of any hopes you harbour about being bought out, resist the temptation to exaggerate your size. Be honest, says strategist Barry Maher, because Milly's Carpet Cleaning can be just as effective as a conglomerate claiming to be "agile, personal, friendly, service-oriented": classic small business traits. According to Maher, you can tackle whatever job comes up if you have a network of associates ready to act fast and flexibly address clients' needs.

Lower overheads help keep prices down.

3. Get a go-to guy

Forget about trying to generate mass publicity the way giants do.

Instead, Maher suggests, think local. Enlist the face of your firm to act as the neighbourhood go-to guy or gal for the press. Build local prominence on search engines and in social media.

4. Practise rapid reaction

However prominent you get, you must act fast. According to business coach Robert Gerrish, the ability to get on the case without bureaucratic obstruction is a key edge. Use it, Gerrish urges. Follow through. Do not let emails fester, as corporations do. "We can be responsive and we can be personal and jump on things that we feel are priorities," he says.

5. Express and experiment

Image now is about much more than clothes, Gerrish says, adding that your website must express your identity. Go for depth and integrity.

In the 'about us' section, where many businesses plonk stock shots of a spectrum of smiling models, describe your people and history. Be a "real" company instead of a big one, and innovate. Try new tools.

Gerrish highlights the presentational impact that an iPad can make.

6. Log off

Reduce your reliance on the internet. Instead of playing five or six rounds of email tennis, pick up the phone, Gerrish says. Suggest meeting for coffee, he adds, stressing the need to be touchy-feely, which banks have grasped. After focusing on online branding, banks are opening more strip shop branches, it seems. The reason: customers want old-school conversations - a good yak.


Source: theage.com.au

Saturday 19 December 2009

8 Tips For Starting Your Own Business

Be Your Own Boss

Wouldn't it be great to be able to quit your job, be your own boss and earn a paycheck from the comfort of your own home? The good news is that with a little planning and some startup money, it is possible! Here we'll examine some important steps to follow when starting your own business.
 
Do You Have What It Takes?

Not everyone is cut out for the challenge of starting their own business. There are several personality traits that are common among successful entrepreneurs, including discipline, frugality, self-confidence, good communication skills, humility, honesty and integrity, superb record-keeping skills, motivation, good health, optimism and more. For more on these characteristics, read Are You An Entrepreneur?

Creating The Concept

Before you quit your job to become an entrepreneur, you must first think of a concept, product or service that will generate a steady stream of income. This may sound easy, but for most people, this is actually the hardest part. You should conceive a plan that puts your knowledge, experience and expertise to use in the most profitable way possible. Once you settle on an idea, research the marketplace to see how similar businesses have fared.

Smart Tip: Start with areas you already have a great deal of interest in, and equipment and materials for. This will help cut down startup costs.
 
Make Sure You Have Support

If you're married and/or have kids, you should also be asking your family how they feel about your working from home, as your decision will affect them both financially and psychologically. If the response is negative, spend time addressing any concerns and decide whether your goal is worth continuing against their wishes if you are unable to change their minds.
 
Develop A Work Space

If you are considering a home-based business, remember that your home's primary function is to serve as a dwelling for you and your family - not as a warehouse or meeting place for your business and its clients. If you're considering a computer-based business, make sure you have the technology necessary to give your idea a fighting chance.

Smart Tip: Make sure you have a dedicated, private area to work. This area should be free of noise and distraction.
 
Create A Business Plan

Numerous studies have shown that one of the major reasons new businesses fail is poor planning. If you are planning on starting up a business, you must have a business plan. This will serve as a road map to guide you, and communicate with your bank and/or investors what you're doing and why they should invest in you. It should include a mission statement, executive summary, product or service offerings, target market, marketing plan, industry and competitive analysis, pro-forma financials, resumes for the company's principals, your offering, and an appendix with any other pertinent information.

Find The Right Funding


Most businesses require startup income. Ideally, this investment will help you break even after a year, but keep in mind that even successful businesses can remain in debt for the first few years. Potential sources of funding include a small-business loan from your local bank, tapping into your savings, money from other investments, borrowing from family/friends and, as a last resort, credit cards.

Smart Tip: Try to avoid racking up costly credit card debt that could cost 20% or more in yearly interest fees. You should also avoid borrowing against your 401(k) or other similar plans as this could adversely affect your retirement.
 
Plan Your Company Budget


Without a budget, a business runs the risk of spending more money than it is taking in, or not spending enough money to grow the business and compete. There are a number of ways you can plan your budget. These include researching industry standards, giving yourself a cushion, reviewing the budget periodically, and shopping around for services and suppliers. For more, read Six Steps To A Better Business Budget.

Smart Tip: While many firms draft a budget yearly, small business owners should do so more often. In fact, many find themselves planning just a month or two ahead when unexpected expenses throw off revenue assumptions.
 
Get All The Help You Can Find


A number of resources are available to help entrepreneurial hopefuls get off to a great start. Free information and assistance is available from your local Small Business Development Center (SBDC) and SCORE offices. Both are associated with the U.S. Small Business Administration (SBA). The IRS can even provide free assistance, including accounting and record-keeping, through the Small Business Tax Education Program.
 
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